Acer Background essay

Topics: Acer Inc., Marketing, Gateway, Inc. Pages: 5 (1488 words) Published: April 15, 2013
Founded in 1976, Acer ranks among the world's top five branded PC vendors. In 2000, Acer spun-off its manufacturing operation to focus its resources on developing technologically advanced, user-friendly solutions. The decision to support the sales of its product lines through specific marketing activities that best utilise distribution channels, has allowed Acer to achieve excellent results worldwide.

Overcoming the barriers between people and technology: This is Acer’s long-term mission, to allow anyone to use and benefit from technology. Acer is renowned for the development and manufacture of sophisticatedly and intuitively designed, easy to use products. Acer is engaged in research, design, manufacture and distribution of computers, mobile phones and related information technology (IT) products. Its product range includes desktop personal computers (PCs), notebook computers, servers, storage products, liquid crystal display (LCD) monitors, high-definition televisions (HDTVs), projectors and handheld/navigational devices, among others. The company offers its products under four brands, including Acer, Gateway, eMachines and Packard Bell. The company operates in Taiwan, Europe, Asia, and North America. It is head quartered in Taipei, Taiwan and employs 6,624 people.

2000s growth
Early signs indicated that the spinoff strategy had worked well, especially in Europe, where Acer became a popular PC brand. The global business model behind this restructuring was to transform Acer from a high technology, hardware-focused company to a customer-centric service-oriented company. On the strategic front, contrary to others PCs vendors who tried to emulate Dell by adopting the direct-sales model, Acer decided to rely on third party channels. By getting rid of all manufacturing functions Acer was free to source all hardware from multiple suppliers. The supply chain model was to direct the flow of goods directly from suppliers to distributors through a headquarters’ centralised enterprise resource planning system (ERP) fed by information coming from local subsidiaries. In 2003, company sales increased 48 percent to $4.6 billion, and helped Acer surpass Japan's Toshiba and NEC, making it the world's fifth largest maker of PCs.[6] In 2005, Acer has successfully implemented the Channel Business Model across its worldwide operations. In 2004 Gianfranco Lanci, an Italian, was promoted CEO of Acer Inc. while J.T Wang remained President

Growth and netbook raise
In the mid-2000s years, consumer notebooks have been almost the sole growth drivers for the PC industry, and Acer's exceptionally low overheads and dedication to the channel had made it one of the main beneficiaries of this trend.[9] Acer grew quickly in Europe in part by embracing the use of more traditional distribution channels targeting retail consumers when some rivals were pursuing online sales and business customers. In 2007 Acer bought Gateway in the USA and Packard Bell in Europe and became the Number 3 world provider of computers and number 2 for notebooks, and achieved significant improvement in profitability. Acer has been striving to become the world`s largest PC vendor, in the belief that the goal can help it achieve economy of scale and garner higher margin.[10] But such a reliance on the high-volume, low-value PC market made Acer exposed when buying habits changed.

2010's sales falling and restructuring
Following the decline in sales, especially of notebooks, the company's president Gianfranco Lanci, the man who was largely responsible for the super-efficient, high-volume channel business model that made Acer the second biggest PC OEM by sales volume was departed due to disagreements with the shareholders. Lanci said that the interests that control Acer were worried that his plan would lead to a de-Taiwanization of the company while he was just trying to make it more global.[11] On June 2011 Acer re-evaluated its inventory-management strategy...
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